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Pennsylvania Cancellation Fees

When a utility customer agrees to a power plan with an electricity provider, it's extremely important that they understand the potential fees that can be involved when canceling their utility contract. The terms and conditions of any given power plan can be found in the power provider's mandatory disclosure statement. Mandatory disclosure statements provide specific information on rates, fees, penalties, etc. These disclosures are intended to make it easier for consumers to find cheap electric companies. Once a contract has been agreed upon, both the electric services supplier and the customer are bound by the conditions of the power agreement, including the set fees involved for terminating service.


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Ending Contracts

When a contract is about to come to an end the customer should expect two notices from their supplier to be sent in the mail as a warning. The first notice is initially sent 45 to 60 days prior to the contract's expiration date. Consumers can also be notified electronically by e-mail. The second notice will be sent by the supplier 30 days prior to the contract's expiration date.


Variable Rate Contracts

Customers on a variable rate contract may or may not be notified if changes in price take place. Suppliers provide consumers with an average price of the first billing cycle as listed in the contract's price variability, if any. If other changes in service occur, the suppliers must then inform the customers within the time frame stated in the power agreement.


Cancellation Fees

Customers need to be aware of any high cancellation fees that may be charged, due to an early contract termination. A notice should be sent by the provider before the contracts ending date, which also includes when the customer can once again choose a different plan from their current supplier without penalties, or, change to another electricity provider on the open Pennsylvania utility market.


Terms and Conditions

When a customer doesn't renew or switch, their supplier can convert the prior utility agreement into a monthly variable rate contract, or a fixed rate one. The supplier is required to by law to notify the power customer of what the new kilowatt-per-hour rate will be in the first billing cycle. Customers can also get a condensed summary of all power plan fine print from their supplier in order to find cheaper electric rates in Pennsylvania . The summary statement is an easy to understand simple document that explains very important key electricity contract terms and conditions.

Common terms and conditions of a contract include:

A fixed rate that remains the same until the end of the contract term.
A variable rate which can change at any time.
Pre-pay, 6-month, 12-month, 24-month and 36-month contract plans are standard utility agreement lengths.
Early termination and cancellation fees can run anywhere from $50 to $250 dollars on average, depending on the power plan.


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